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Economic News
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Kenton Becker
Loan Officer
Office: (206) 423-2552
NMLS #123961 ,
Washington #MLO-123961

Events Last Week:

GDP Higher
Durable Orders Fell
Jobless Claims Down
Manufacturing Mixed

Events This Week:

Tue 9/3
ISM Manuf
Construction

Wed 9/4
Beige Book

Thur 9/5
ISM Services
ADP

Fri 9/6
Employment

 

 

 

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landhome

Concerns About Syria

Increased concerns about the conflict in Syria caused investors to shift to safer assets last week. Mixed economic data was roughly neutral. As a result, mortgage rates ended the week a little lower.

Concerns about the reported use of chemical weapons by the Syrian government and the possibility of increased US involvement has resulted in greater uncertainty in financial markets. Investors reacted by shifting from riskier assets such as stocks to safer assets such as bonds, which helped mortgage rates. It also resulted in higher oil prices. When energy costs rise, economic growth slows, and this also benefits mortgage rates.

The other major focus for investors remains the timing for the Fed to begin to taper its bond purchase program. The economic data released last week was split between positive and negative surprises, however, which provided little reason for investors to change their expectations for Fed policy. The big upside news last week was that second quarter GDP was revised higher from 1.7% to 2.5%. On the downside, the Durable Orders data showed a large decline. Consumer Confidence and Consumer Sentiment increased, while Pending Home Sales fell. All in all, last week's mixed bag of data created volatility for mortgage rates, but it had little net impact.

Also Notable:
  • Core PCE inflation was just 1.2% higher than one year ago
  • Pending Home Sales were 7% higher than one year ago
  • Oil prices rose to the highest level since May 2011
  • Unemployment in the euro zone remained near a record high

graph

 
Average 30 yr fixed rate:
Last week: +0.00%
This week: -0.05%
Stocks (weekly):
Dow: 14,800 -150
NASDAQ: 3,600 -50
 

This Week

The big story this week will be Friday's Employment report. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, and it will carry even more weight than normal due to how it will influence Fed policy. Earlier in the week, ISM Manufacturing and Construction Spending will be released on Tuesday. The Fed's Beige Book and the Trade Balance are scheduled for Wednesday. ISM Services, ADP Employment, Productivity, and Factory Orders will come out on Thursday.

©2013 MBSQuoteline

landhome
Equal Housing Opportunity Lender. Rates, Program, Fees, and Guidelines are subject to change without notice. Not a commitment to lend. Land Home only conducts business in states we are approved to. Land Home Financial Services, 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan License #CL-89331. NMLS ID # 89331. Kenton Becker Licenses: NMLS #123961; Washington #MLO-123961. You are receiving this communication because of an existing and/or past business relationship, or because you have consented to receive communications from Land Home. 09-03-13  

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